A system and a method for classifying sensitive data elements in a file is provided. The method includes receiving and converting, the unstructured data file into a machine-readable format and generating, a plurality of sensitive data features. The plurality of sensitive data features represents single element of the sensitive data. The method includes generating, a plurality of adjacent elements corresponding to the single elements of the sensitive data and generating a plurality of feature categories. The method includes aggregating, the plurality of adjacent node features and the plurality of edge features. The method includes calculating and concatenating the plurality of aggregated adjacent nodes features and the plurality of aggregated edge features. The method includes comparing, the distance of the sensitive data from all of the adjacent sensitive data. The method includes classifying and predicting, the sensitive data to be a true positive or false positive sensitive data by using machine learning.